1. Not much raw licorice is produced in the US, and because of economies of scale there are four main importers. Schenker is the only importer of licorice to the west coast of the US while all three of Mafco, Kuenhe, and Extracts & Ingredients import to the east coast. a. If the MES is so large that only one firm can efficiently supply candy makers on the west coast, will entry be accommodated? b. How would one of the east coast importers deciding to supply the west coast market affect Schenker's profits? c. What actions might Schenker undertake to deter this entry? d. Which of these four firms would you expect to have the most excess capacity